EARN25

Why It's Time to Bet on This Property Stock's Next Move Higher

An unwinding of pessimism in the options pits could boost the shares, too

Deputy Editor
May 12, 2022 at 1:50 PM
facebook X logo linkedin


American International Group Inc (NYSE:AIG) is down 0.8% to trade at $58.04 this afternoon. The shares hit an more than four-year high of $65.73 on April 21, but have pulled back in recent sessions alongside the broader market. In fact, American International Group stock has lost nearly 7% in the last month, and is clinging just above its year-to-date breakeven level. However, there's reason to believe this pullback will be short lived, given AIG is now trading near a historically bullish trendline.

Digging deeper, American International Group stock just pulled back to its 200-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, comparable moves have occurred five times over the past three years, with the security enjoying a positive one-month return 100% of the time, while averaging a 7% pop. A similar move from its current perch would put AIG back above the $62 level -- well within striking distance of its multi-year highs.

AIG chart May 12

An unwinding of pessimism in the options pits could create additional tailwinds for the equity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AIG's 50-day put/call volume ratio of sits higher than 96% of readings from the past year. This indicates puts have been getting picked up at much faster-than-usual clip.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!